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EU Unveils Permanent Steel Safeguard: Halved Duty‑Free Quotas and 50% Tariff Above Caps

Brussels casts the measure as protection from Chinese overcapacity.

Overview

  • The proposal halves annual duty‑free import quotas and doubles the over‑quota duty to 50%, paired with new melt‑and‑cast origin declarations to curb circumvention.
  • Commission documents indicate the duty‑free ceiling would fall to about 18.3 million tonnes a year, aiming to make over‑cap shipments uneconomic and support EU output.
  • The plan would replace the current safeguard that expires in mid‑2026 and still requires approval from the European Parliament and all 27 member states.
  • German industry groups offered cautious backing: the steel lobby urged lasting relief on power costs and procurement preference, while the VDMA warned of higher input costs for manufacturers.
  • Producers such as Thyssenkrupp welcomed the move, as Brussels cites global overcapacity well above 600 million tonnes and the risk of redirected exports after recent U.S. tariff hikes; Germany plans a national steel summit this autumn.